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I AGREE
14 Jul 2017
Sao Paulo, July 14, 2017 -- Moody's America Latina announced today that the proposed inclusion of
an additional insurance provider, the replacement of trustee and
master servicer, an extension of revolving period and other amendments
to the structure of FIDC Mercantis Auto Peças would not,
in and of itself and as of this time, result in a change or withdrawal
of the rating assigned to the senior shares.
Moody's has determined that: (i) the proposed inclusion of AIG Seguros
Brasil S.A. (AIG Brasil, NR) as an additional credit
insurance provider; (ii) the replacement of Citibank Distribuidora
de Títulos e Valores Mobiliários (Citibank, NR) as
trustee and master servicer by Santander Securities Services Brasil DTVM
S.A. (Santander, NR); (iii) the proposed extension
of the revolving period up to a maximum of five years from issuance,
renewable on an annual basis; and (iv) certain clarifications on
eligibility criteria, conditions of sale and representations and
warranties; in and of itself and as of this time, will not
result in a change or withdrawal of the senior issuance ratings currently
assigned to FIDC Mercantis Auto Peças. However, Moody's
opinion addresses only the credit impact associated with the proposed
amendments, and Moody's is not expressing any opinion as to whether
the amendment has, or could have, other non-credit
related effects that may have a detrimental impact on the interests of
shareholders and/or counterparties.
FIDC Mercantis Auto Peças is backed by trade receivables originated
by Goodyear do Brasil Produtos de Borracha LTDA. The transaction
benefits from a credit insurance policy provided by Euler Hermes Seguros
de Crédito S.A., backed by a guarantee from
Euler Hermes SA (Aa3 IFSR) covering 95% of receivables' credit-related
losses, according to Euler Hermes' approved credit limits on obligors,
with a maximum indemnification amount of BRL 160 million. An additional
insurance policy to be provided by AIG Brasil will have, essentially,
the same terms and conditions of the existing insurance policy provided
by Euler Hermes, which will cover for: (i) credit losses that
exceed the coverage provided by Euler Hermes, subject to the credit
limits approved by AIG Brasil and (ii) credit losses related to obligors
that are not covered by Euler Hermes's policy; subject to a
maximum indemnification amount of BRL 74.1 million. AIG
Brasil's insurance policy will be supported by a cut-through
clause of a reinsurance agreement that will provide the transaction with
the rights to receive payments directly from American Home Assurance Company
(A2 IFSR) in case of AIG Brasil's bankruptcy, insolvency,
liquidation or equivalent process under the laws of Brazil, including
any noncompliance with applicable solvency or capital rules.
The Euler Hermes' credit insurance policy will be renewed in August
2017 for a 13-month period, to cover for the extended revolving
period. Should the insurance policy not be renewed in substantially
all of the present terms and condition, Moody's may review the transaction's
ratings. Credit enhancement is also provided in the form of over-collateralization,
covering dilutions, yield and the exceeding 5% of credit
losses, not covered by the insurance.
This publication does not announce a credit rating action. For
any credit ratings referenced in this publication, please see the
ratings tab on the issuer/entity page on www.moodys.com
for the most updated credit rating action information and rating history.
This publication does not announce a credit rating action. For
any credit ratings referenced in this publication, please see the
ratings tab on the issuer/entity page on www.moodys.com
for the most updated credit rating action information and rating history.
Joao Daher
Analyst
Structured Finance Group
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
JOURNALISTS: 800 891 2518
Client Service: 1 212 553 1653
Martin Fernandez Romero
Senior Vice President/Manager
Structured Finance Group
JOURNALISTS: 800 666 3506
Client Service: 1 212 553 1653
Releasing Office:
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
JOURNALISTS: 800 891 2518
Client Service: 1 212 553 1653
No Related Data.
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MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
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